Natural Gas Price Forecast – Natural Gas Markets Form Bearish Candle

Natural gas markets have struggled at the $2.75 level again, as it is an area that continues to cause issues. At this point in time I believe that the market will ultimately make a decision relatively soon, and I do think that there are a lot of buyers underneath. Having said that, there is the gap underneath that could need to be filled it before the move higher, so there is always that argument to be made. However, right now we have the 200 day EMA sitting just below current pricing, as well as the 50 day EMA that looks likely to turn around and break above there. If we get that move, the so-called “golden cross”, it does tend to bring a lot of longer-term traders and.

NATGAS Video 26.11.19

I am extraordinarily bearish on natural gas. However, I also recognize that this time year’s typically good for it. So, as a general rule I won’t necessarily short natural gas is time a year under any circumstance. It doesn’t necessarily mean that I have to be long of the commodity, just that I’m not willing to short it during the busiest season of the year. Where I live, there is natural gas fracking hand over fist, and quite frankly natural gas is something that although use quite frequently, is so abundant that it is in my face at all times of just how oversupply the market is longer-term. Because of this, one of the best trades of the year typically is to buy the short covering rally in the colder months, and to short the market once he gets a little ahead of itself, normally somewhere around the middle of January. Currently, if we can bounce a break above the $2.75 level that’s a very bullish sign. If we break down below these moving averages, then I will look at that gap towards the $2.40 region for the next possible buying opportunity.

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